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Feb 09

NZ Productivity Commission slams their public sector

A new NZPC (New Zealand Productivity Commission) report slams parts of their public sector for inefficiency

It says the private sector measures its productivity but the public sector falls short despite $40 billion being spent every year on such as health, education, justice, law and order and social welfare

“The New Zealand government has been organised around outputs since the late 1980s”

“Despite this, for large parts of the state sector, there is little measurement or understanding of productivity”

“In some sectors ….. agencies were either unwilling to conduct productivity assessments, or unable to bring together the data needed for such studies”

“The public sector financial management system provides weak incentives for agencies to seek productivity gains”

“Most attention is focused on gaining new revenue rather than optimising existing spending”

“There appears to be little demand for productivity measures from Ministers, and insufficient demand from senior public sector leaders for the necessary information and analysis”

NZPC Chairman Murray Sherwin said: “This is not good enough”

“Measuring productivity is essential for knowing if the money is being well spent”

Conclusion:

  • This is not just an NZ issue, it’s a global problem

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